China's Kling AI Raises $2 Billion to Expand AI Video Operations

What happened

Kling AI, a spinoff from Chinese short-video giant Kuaishou Technology, closed an initial $2 billion venture capital round to expand its AI video generation operations.

Context and impact

Kling AI competes globally with OpenAI Sora, ByteDance Seedance, and Alibaba HappyHorse in AI video generation. The massive capital injection will strengthen infrastructure, international expansion, and multimodal model research. Chinese AI video models are rapidly gaining global market share — Alibaba HappyHorse 1.1 recently reached global #2.

Details

• Round size: $2 billion (initial tranche)
• Parent company: Kuaishou Technology (Chinese short-video platform)
• Product: AI video generation for consumer and B2B markets
• Key competitors: OpenAI Sora, ByteDance Seedance, Alibaba HappyHorse
• One of the largest Chinese AI funding transactions of 2026